Chainlink (LINK) Holds Above 14% Gains As Crypto Market Slumps Heavily

2023-07-24 15:37:16

Following a correction in the crypto market, several coins, including the flagship cryptocurrency Bitcoin, have surrendered their weekly-accumulated gains. However, amid the massive depression, Chainlink (LINK) held more than 14% in the weekly chart.

Does the off-chain data aggregator’s remarkable resilience despite the bearish outlook depict a market decoupling, or is something sustaining it?

Chainlink Price Stronger As More Eco Developments Unfold

Last week, Chainlink launched the much anticipated cross-chain interoperability protocol (CCIP) on Avalanche, Ethereum, Optimism, and Polygon mainnets. According to the official announcement, leading DeFi protocols in lending and derivatives, including Synthetix, have adopted the CCIP.

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Synthetix is now live in the CCIP mainnet, while BGD Labs (Aave) have integrated it into their protocols. Chainlink’s CCIP seeks to address the complexity associated with cross-chain solutions and offers enhanced security to mitigate risks of exploits.

The CCIP has several use cases: cross-chain tokenized assets, cross-chain collateral, cross-chain liquid staking, cross-chain NFT minting, cross-chain gaming, and account abstraction. It also allows for cross-chain data storage and computation.

This development is a major milestone for the Chainlink network and increases LINK token utility. As such, LINK’s recent bullish price moves are not farfetched

LINK’s price currently stands around $7.60 in the daily chart. | Source: LINKUSD price chart from TradingView.com## Chainlink Bullish Price Movement Suggests Potential Rallies Underway

Chainlink added notable gains in the last seven days as its price increased over 27% from its value seven days ago (July 19) before the latest downtrend. LINK traded at $6.5286 on July 19 with its price increase nearly neutral, with stiff resistance at the $6 price level

However, LINK witnessed a sharp surge on July 20 following the news that Aave (BGD Labs) and Synthetix launched Chainlink’s cross-chain governance, CCIP. LINK’s price spiked from $6.8559 to approximately $8.04 during this time, a 17% increase

The rally continued, with LINK hitting a week-high of $8.3358 on July 21. Although it met a few pullbacks between July 22 and 23, LINK remained above $8 until today’s market-wide correction.

The token’s price has declined over 4.94% in the last 24 hours, with a bearish momentum that snatched some gains garnered over the week. However, LINK remains bullish as its current price is over 14% higher than its value seven days ago.

Nonetheless, Chainlink maintains a bullish trading activity, with a 27 % increase in 24-hour trading volume. It suggests today’s bearish outlook has not waned Chainlink’s network activity. Moreover, LINK’s relative strength index is 60, below the overbought region (70), suggesting potential rallies are underway as more buyers join the market.

The daily chart shows LINK met stiff resistance at $7.628. However, the ongoing buying activity may succeed in spinning LINK off the $7.628 resistance price level, facilitating a push above $8.408 in the coming days

Featured image from Pixabay and chart from TradingView.com

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